Judge knocks down Elon Musk’s bid to end SEC consent decree
A federal judge denied Tesla CEO Elon Musk’s bid to end a settlement agreement he struck with the SEC after it charged him with securities fraud in 2018.
The judge also denied Musk’s request to quash part of a newer subpoena by the federal financial regulators.
In his opinion, Judge Lewis J. Liman shot down an argument Musk attorneys made suggesting that the settlement agreement had chilled the CEO’s right to free speech.
A federal judge on Wednesday knocked down Tesla CEO Elon Musk’s bid to terminate a settlement agreement he struck with the Securities and Exchange Commission after the agency charged him with securities fraud in September 2018. The judge also denied Musk’s motion to quash a newer subpoena by the SEC.
The financial regulators had charged Tesla and Musk with making “false and misleading” statements to investors when the CEO announced on Twitter on Aug. 7, 2018, that he was thinking of taking the automaker private at $420 a share and had “funding secured.”
As part of a settlement agreement, Tesla and Musk each agreed to pay a $20 million fine. Musk also had to relinquish his role as chairman at Tesla for three years and agreed not to claim innocence or deny the allegations of the SEC’s complaint.
https://www.cnbc.com/2022/04/27/judg...nt-decree.html